"I don't think we are prepared for a situation where spot prices could go so low," he said.

The steep drop in spot prices reflects the weak global economy, Shamel said. "This economy, as you know, has been in a freefall, the worst we've seen in many generations."

The 15-nation eurozone and Japan both reported a shrinking GDP during consecutive quarters, meeting a common definition of a recession. The US GDP fell by 0.5% in the third quarter, and it will likely shrink again in the fourth.

"I don't think we've seen the bottom of this yet," Shamel said. "I think we are in for some more tough times through the end of the quarter and probably through the first quarter of next year."

The warnings and announcements come as pricing continues to drop across several chemicals.

Not all chemical players are particularly content about the hefty price declines, as they still have inventory in their tanks bought at higher levels and now can not pass these costs on.

For this reason, some buyers have agreed to less of a decrease on contract settlements to keep the markets steady.

Phenolspot prices fell by 30 cents/lb ($661/tonne, €516/tonne) or 50% to 34 cents/lb just days after disastrous market and energy complex fundamentals eroded 62% of the November feedstock contract benzene settlement. The phenol contract price, however, remains in the low 80s cents/lb range as the contract lags by one month.

For acrylic sheet makers, formulas are based on prices for methyl methacrylate (MMA) prices, not crude oil and propylene prices which are sinking rapidly. Acrylic sheet makers and other downstream producers are now trying to sell product made with the feedstock purchased in the expensive summer months.

“Our customers are seeing the drop in our raw materials and are looking for relief even though we are currently on a quarterly lag. That combination, along with the housing market makes for a very ugly fourth quarter,” an MMA buyer said.

A seller added that prices falling this fast was dangerous to the entire petrochemical chain. A number of production cutbacks were now being heard as a result of massive price drops.

"It's a big problem," a methanol distributor said.

Sellers were not trying to prop up contract prices. Instead, they were "just dragging their feet on the way down".

The following lists the most recent US contract and spot prices for several chemicals: